Bank of England

There is a "real chance" the Bank of England will raise interest rates as early as next week, says Skandia, with subsequent hikes pushing rates up to 3% by the end of next year.

Britain could suffer a jobless recovery like the one currently engulfing the US, an Institute for Fiscal Studies' (IFS) economist warns.

The Bank of England topped up Governor Mervyn King's pension pot by £1.4m after deciding to award him an early payout in 2008.

Martin Weale has called for an immediate 0.25% increase in the Bank of England (BoE) base interest rate, echoing the view of Monetary Policy Committee (MPC) hawk Andrew Sentance.

Bank of England chief Mervyn King said the shock contraction in GDP figures proves the UK recovery will be "choppy" but he appeared to rule out immediate interest rate rises.

The economy suffered a marked slowdown in growth in the final three months of last year, official figures released tomorrow are expected to show.

Investors should shun fixed income assets for high-yielding equities in areas like emerging markets, in order to beat the inflation trap, according to Distinction Asset Management.

The BoE risks making the UK's debt problem bigger if it raises rates above 0.5% in the near-term to tackle "one-off" inflationary pressures, says the head of portfolio management at Prudential.

The Bank of England has maintained interest rates at 0.5% and kept its quantitative easing programme at £200bn.

Dr Ros Altmann has called on the government to reintroduce inflation-linked certificates as pensioners battle the rising cost of living.